KPS Capital Partners announced Tuesday it will sell Waupaca Foundry Inc., the world's largest producer of ductile iron and gray iron castings, to Japanese metals producer Hitachi Metals Ltd. for $1.3 billion.

The closing of the sale is expected in the fourth quarter of 2014, the New York-based private-equity firm said in a news release.

KPS purchased Waupaca Foundry in June 2012, expanding production capacity at its six foundries — three in Waupaca, and one each in Marinette, Tell City, Ind., and Etowah, Tenn. — and adding more than 200 new jobs.

"This investment by Hitachi Metals in Waupaca Foundry's world-class facilities and capabilities is a validation of what we have accomplished over the past two years and signals a strong commitment to manufacturing and the foundry industry in the United States," Gary Gigante, president and CEO of Waupaca Foundry, said in a statement. "Partnering with Hitachi Metals will bring Waupaca Foundry significant global strength that will help us drive continued expansion. We share Hitachi's vision for the future of our business in the United States and its many growth opportunities in global markets."

Waupaca Foundry employs about 3,900 people and serves customers in the automotive, commercial truck, agriculture, construction and other industrial markets. James Newsome, director of marketing, said there are no changes in staffing levels expected as a result of the sale.

Hitachi Metals was founded in 1910 as the Tobata Foundry and has a strong tradition in iron casting production, metal technology, and machining services. It operates foundries the United States, Japan, Korea and India.

"Our new partnership with Hitachi Metals will present great opportunities for our employees, customers, and suppliers, and we anticipate a seamless transition," Gigante said.